Bullish Global, the cryptocurrency group backed by billionaires Peter Thiel, Louis Bacon and Alan Howard, has announced listing plans in New York through a Spac deal in another sign of the industry’s willingness to exploit stock markets .
The digital assets group, which is managed by blockchain software company Block.one, said Friday it would merge with Far Peak Acquisition Corp., a white-collar control company led by the former president of the New Stock Exchange. York, Tom Farley.
The deal values Bullish at about $ 9 billion, a figure that largely includes the $ 692 million in cash held at Far Peak and the assets and investments provided by Thiel, Bacon, Block.one and others to capitalize on Bullish. Global in May.
Hong Kong businessman Richard Li, German financier Christian Angermayer, Michael Novogratz’s Galaxy Digital and Nomura, the Japanese investment bank, also supported Bullish.
The Bullish move, which plans to launch a digital asset exchange but has not yet begun trading, underscores a push by crypto investors to list their nascent projects in the United States, the world’s largest capital market.
Circle, the US financial technology company behind the stablecoin USD Coin, announced plans Thursday to merge with a special-purpose purchasing vehicle and list it on the New York Stock Exchange.
Bakkt, a cryptocurrency platform majority owned by conventional exchanges behemoth Intercontinental Exchange, is also due to be listed after a combination with the acquisition vehicle Victory Park Capital in January. Coinbase, the exchange, also debuted on Wall Street in April.
Bullish and its supporters are betting on the growth of decentralized finance, or DeFi, a market that grew from about $ 15bn at the beginning of the year to $ 65bn, according to an estimate by analysts at JPMorgan in May.
The group will manage a decentralized trading network, which allows users to buy and sell digital goods directly with each other and bypass intermediaries that impose fees, such as an exchange or a clearing house.
It will encourage trading using automated market makers, who do not trade through the central order book of an exchange. Instead they deposit their assets in a coded contract, and the algorithms look for buyers and manage the buying and selling.
Asset owners are encouraged to participate in the pool of taxes generated by marketing activities. Bullish plans to manage a pilot of its exchange for potential users to test in the coming weeks.
Decentralized commerce remains in its infancy and larger networks are built on the ether blockchain, a rival to Block.one’s EOS.IO.
Experts have described the defi market as the most difficult to trade in the world because it is anonymous, there are hundreds of currencies and they all have different trading characteristics. Hackings are also common, according to blockchain analysis group CipherTrace. Users have also complained about the high costs that are incurred to offset the computing energy needed to run trades on ether.
Farley will become executive director of Bullish and Block.a general manager Brendan Blumer will be appointed president of Bullish. “We are only in the first or second entry of the cryptocurrency market and I am happy to be joined by the Bullish team as we revolutionize the future of digital assets through cutting-edge financial technologies,” Farley said.
The agreement is expected to close at the end of the year.